ESOP Discount Allowed as Liability Accrues Over Vesting Period: ITAT Bangalore

DCIT Vs Nobroker Technologies Solutions Pvt. Ltd (ITAT Bangalore) The Bangalore Bench of the Income Tax Appellate Tribunal (IT AT) dismissed the Revenue’s appeals for Assessment Years (AYs) 2018-19 and 2021-22, upholding the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] in favour of the assessee. The principal issues involved the allowability of Employee Stock Option Plan (ESOP) expenditure under Section 37 of the Income-tax Act, 1961, and the applicability of disallowance under Section 14A read with Rule 8D where no exempt income had been earned during the relevant year. F...